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Last Updated: Monday, 9 January 2006, 10:06 GMT
Global oil prices 'to stay high'
Opec headquarters in Vienna
Indonesia is happy with Opec's current production levels
Opec member Indonesia has said it sees no need for the oil producing cartel to cut output because prices are expected to remain high into the spring.

The comments of its Mines and Energy Minister Purnomo Yusgiantoro came ahead of Opec's next meeting on 31 January.

The organisation decided against cutting output in December, but it fell anyway, primarily due to security worries hitting Iraqi exports.

Global oil prices surged 30% last year, on soaring demand and supply concerns.

'Strong price'

While international demand for oil continued to rise, led by a giant increase in Chinese consumption, a number of factors hit supplies in 2005, including the situation in Iraq, low refinery capacity in the US and hurricanes hitting production in the Gulf of Mexico.

"At the moment the price is still high and I think the price will remain strong in the second quarter, therefore there is no need for Opec to cut production," said Mr Yusgiantoro.

Both US light crude and London's Brent were relatively flat in Monday trading.

US light was up 6 cents to $64.27 a barrel, while Brent was ahead 7 cents to $62.79.

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